TY  - JOUR
U1  - Zeitschriftenartikel, wissenschaftlich - begutachtet (reviewed)
A1  - Herzog, Bodo
T1  - Optimal policy under uncertainty and rational inattention
JF  - Research in international business and finance
N2  - This paper generalizes the theory of policy uncertainty with the new literature on rational inattention. First, the model demonstrates that inattention is dependent on the signal variance and the policy parameter. Second, I discover a novel trade-off showing that a policy instrument mitigates attention. Third, the policy instrument is non-linear and reciprocal to both the size and variance of the signal. The unifying theory creates new implications to economic theory and public policy alike.
KW  - rational inattention
KW  - trade-off
KW  - policy uncertainty
KW  - unifying modelling
Y1  - 2019
SN  - 0275-5319
SS  - 0275-5319
U6  - https://doi.org/10.1016/j.ribaf.2019.07.002
DO  - https://doi.org/10.1016/j.ribaf.2019.07.002
VL  - 50
SP  - 444
EP  - 449
S1  - 6
PB  - Elsevier
CY  - Amsterdam
ER  -